*My goal is to be financially independent by having assets (investments and or business) that generate enough passive income to cover my essential expenses by age 65 43 40 39.*

I am based in the UK and have been tracking how much of my essential expenses would be covered by the projected passive income I can receive from investments. Progress since 2013 is shown below. My current expenses coverage and average savings rates are also shown and will be **updated monthly** based on my latest calculations. To determine the coverage proportion, I used the *4% Rule* which stipulates that a diversified investment portfolio is unlikely to be depleted when a maximum portfolio value of 4% (Safe Withdrawal Rate) is withdrawn per year.

The expenses coverage proportion is the ratio of the Safe Withdrawal Rate to personal expenses. I use this to determine how much Financial Independence (FI) I have achieved. When the coverage proportion reaches 100%, Financial Independence is attained. View my current and previous progress here.

As the chart shows, in 2013 less than 2% of my annual expenses could be covered by withdrawing 4% of my portfolio. This figure has steadily risen to over 20% in January 2017, with bigger increments from one year to the next. Progress seems slow at first but if you are patient the gains will become more and more significant.

This is the power of compounding investment returns. My investments have had an annual return of about 14% in this period. You can learn more about how I am achieving this in my ebook.